Community Banks and Regulatory Burdens
Community banking in the U.S. is being slowly strangled by regulations, according to a former chair of the Federal Deposit Insurance Corp.
A recent visit to a community bank highlighted the issue, where a young woman opening her first account was subject to a checklist of intrusive questions about her personal life, job history, and finances.
Even long-time customers are not exempt, as a friend's son was asked a similar list of invasive questions despite his parents having banked there for over 10 years.
The regulatory burdens are placing heavier weights on small banks than on giant ones.
The former chair of the FDIC argues that community banks need relief from these suffocating regulations.
Author's summary: Community banks are struggling due to regulatory burdens.